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Trading AUD/USD

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Written By
James Barra
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James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
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Edited By
Jemma Grist
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Edited By
Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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Fact Checked By
William Berg
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Fact Checked By
William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Updated
Jul 24, 2024

The popularity of the AUD/USD currency pair, otherwise known as the ‘Aussie’, has surged in recent years. As a result of Australia’s commodity boom in recent decades, the pair now unites two expanding and influential economies. This page will break down everything you need to know about the AUD/USD pair, from its benefits and drawbacks to currency correlations, history and strategy, including trading hours, signals, charts and top tips.

AUD/USD Trading Brokers

Click a broker for details
  1. 1
    FOREX.com
    Active Trader Program With A 15% Reduction In Costs
    Ratings
    4.9 / 5
    4 / 5
    4.3 / 5
    4.6 / 5
    4.6 / 5
    4.3 / 5
    4.8 / 5
    4.5 / 5
    3.6 / 5
    3.8 / 5
    $100
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Stocks, Futures, Futures Options
    MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
    Wire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN
    Go To FOREX.com
  2. 2
    NinjaTrader
    Ratings
    4.3 / 5
    2.8 / 5
    2.9 / 5
    4.3 / 5
    4.5 / 5
    4 / 5
    4 / 5
    3.5 / 5
    3 / 5
    3.2 / 5
    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Stocks, Options, Commodities, Futures, Crypto
    NinjaTrader Desktop, Web & Mobile, eSignal
    ACH Transfer, Debit Card, Wire Transfer
    USD
    Go To NinjaTrader
  3. 3
    OANDA US
    CFDs are not available to residents in the United States.
    Ratings
    4.5 / 5
    3.5 / 5
    2.8 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.3 / 5
    3.8 / 5
    4.7 / 5
    3.7 / 5
    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)
    OANDA Trade, MT4, TradingView, AutoChartist
    Wire Transfer, Visa, Mastercard, Debit Card, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD
    Go To OANDA US
  4. 4
    IG
    Forex trading involves risk. Losses can exceed deposits.
    Ratings
    4.9 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.8 / 5
    4.5 / 5
    4.9 / 5
    5 / 5
    4.6 / 5
    4 / 5
    $0
    0.01 Lots
    1:30 (Retail), 1:250 (Pro)
    FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
    Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
    PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card
    USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD
    Go To IG
  5. 5
    Interactive Brokers
    Ratings
    4.5 / 5
    3.5 / 5
    4.5 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5
    $0
    $100
    1:50
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
    Go To Interactive Brokers
  6. 6
    Videforex
    20% to 200% Deposit Bonus
    $250
    $0.01
    1:500
    Binary Options, CFDs, Forex, Indices, Commodities, Crypto
    TradingView
    Skrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum Payments
    USD, EUR, GBP, AUD, RUB
    Go To Videforex
  7. 7
    InstaTrade
    Ratings
    2.5 / 5
    3 / 5
    3 / 5
    3 / 5
    3.5 / 5
    3.5 / 5
    3.5 / 5
    3.3 / 5
    4.8 / 5
    4.4 / 5
    $1
    0.01
    1:1000
    BVI FSC
    FISP, CFDs, Forex, Stocks, Indices, Commodities, Cryptos, Futures
    InstaTrade Gear, MT4
    Visa, Mastercard, Wire Transfer, Credit Card, Debit Card, Bitcoin Payments, Ethereum Payments
    USD, EUR, RUB
    Go To InstaTrade
  8. 8
    Plus500 US
    Welcome Deposit Bonus up to $200
    Trading with leverage involves risk.
    Ratings
    3.5 / 5
    3.7 / 5
    3.5 / 5
    3.3 / 5
    3.3 / 5
    3.5 / 5
    2.8 / 5
    3.5 / 5
    4.1 / 5
    4.3 / 5
    $100
    0.0 Lots
    CFTC, NFA
    Futures on Forex, Commodities, Cryptos, Indices, Interest Rates
    WebTrader, App
    ACH Transfer, Wire Transfer, Debit Card, Mastercard, Visa
    USD
    Go To Plus500 US
  9. 9
    Axofa
    10% Deposit Bonus
    $1
    0.01 Lots
    1:1000
    SVGFSA
    Forex, CFDs, Stocks, Indices, Commodities
    MT5
    Debit Card, Credit Card, Visa, Mastercard, Neteller, Skrill, Bitcoin Payments, Wire Transfer
    USD, IDR
    Go To Axofa
  10. 10
    RaceOption
    20% - 200% Deposit Bonus
    $250
    $0.01
    1:500
    Binary Options, CFDs
    TradingView
    Credit Card, Debit Card, Bitcoin Payments, Neteller, Skrill, Perfect Money, Mastercard, Visa, Ethereum Payments
    USD, EUR, GBP, AUD, RUB
    Go To RaceOption

This is why we think these brokers are the best in this category:

  1. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
  2. NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
  3. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  4. IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
  5. Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
  6. Videforex - Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
  7. InstaTrade - InstaTrade offers a huge selection of around 100 currency pairs. It provides spreads starting at 0.0 on majors, plus integrated forex analysis in the web platform, featuring signals, plus technical and fundamental summaries. Additionally, InstaTrade offers educational modules covering forex basics for beginners, including margin trading and risk management.
  8. Plus500 US - Plus500 US offers futures trading on a small selection of 13 currencies, including popular pairs like the EUR/USD and GBP/USD. Day trading margins are competitive, starting from $40, while the educational resources do an excellent job of breaking down the basics of forex futures for new traders.
  9. Axofa - Axofa offers a decent range of 50+ forex pairs with raw spreads from 0.0 pips. Very high leverage up to 1:1000 and commission-free forex trading is available. With that said, the broker is not particularly transparent when it comes to account conditions and fees.
  10. RaceOption - Trade 25+ major and minor currency pairs with access to over 30 technical indicators in the broker's proprietary terminal. You can also follow and replicate other forex trades using the integrated copy trader.

Trading AUD/USD Comparison

Trading AUD/USD Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator
FOREX.com logo
80+ 1.2 4.9 / 5 $100 NFA, CFTC
NinjaTrader logo
50+ 1.3 3.5 / 5 $0 NFA, CFTC
OANDA US logo
65+ 1.6 4 / 5 $0 NFA, CFTC
IG logo
80+ 0.8 4.9 / 5 $0 FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB
Interactive Brokers logo
100+ 0.08-0.20 bps x trade value 4.3 / 5 $0 FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
Videforex logo
35 Floating from 0.1 pips 2.5 / 5 $250 -
InstaTrade logo
65 0.0 - $1 BVI FSC
Plus500 US logo
13 0.75 4.3 / 5 $100 CFTC, NFA
Axofa logo
10+ From 1.6 pips - $1 SVGFSA
RaceOption logo
25+ Floating - $250 -

FOREX.com

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

Christian Harris, Reviewer

FOREX.com Quick Facts

Bonus OfferActive Trader Program With A 15% Reduction In Costs
GBPUSD Spread1.3
EURUSD Spread1.2
EURGBP Spread1.4
Total Assets80+
Leverage1:50
PlatformsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

Pros

  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
  • Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.

Cons

  • Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
Visit FOREX.com
FOREX.com Review

NinjaTrader

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

Tobias Robinson, Reviewer

NinjaTrader Quick Facts

GBPUSD Spread1.6
EURUSD Spread1.3
EURGBP Spread1.6
Total Assets50+
Leverage1:50
PlatformsNinjaTrader Desktop, Web & Mobile, eSignal
Account CurrenciesUSD

Pros

  • NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets
  • You can get thousands of add-ons and applications from developers in 150+ countries

Cons

  • Non forex and futures trading requires signing up with partner brokers
  • There is a withdrawal fee on some funding methods
  • The premium platform tools come with an extra charge
Visit NinjaTrader
NinjaTrader Review

OANDA US

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

Jemma Grist, Reviewer

OANDA US Quick Facts

GBPUSD Spread3.4
EURUSD Spread1.6
EURGBP Spread1.7
Total Assets65+
Leverage1:50
PlatformsOANDA Trade, MT4, TradingView, AutoChartist
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Pros

  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders
  • Beginners can get started easily with $0 minimum initial deposit
  • OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC

Cons

  • The range of day trading markets is limited to forex and cryptos only
  • There's only a small range of payment methods available, with no e-wallets supported
  • It's a shame that customer support is not available on weekends
Visit OANDA US
OANDA US Review

IG

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

Christian Harris, Reviewer

IG Quick Facts

GBPUSD Spread0.9
EURUSD Spread0.8
EURGBP Spread0.9
Total Assets80+
Leverage1:30 (Retail), 1:250 (Pro)
PlatformsWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

  • As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities
  • The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award

Cons

  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
Visit IG
IG Review

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

GBPUSD Spread0.08-0.20 bps x trade value
EURUSD Spread0.08-0.20 bps x trade value
EURGBP Spread0.08-0.20 bps x trade value
Total Assets100+
Leverage1:50
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
Visit Interactive Brokers
Interactive Brokers Review

Videforex

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."

William Berg, Reviewer

Videforex Quick Facts

Bonus Offer20% to 200% Deposit Bonus
GBPUSD SpreadFloating from 0.1 pips
EURUSD SpreadFloating from 0.1 pips
EURGBP SpreadFloating from 0.1 pips
Total Assets35
Leverage1:500
PlatformsTradingView
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Global clients can make free and fast transfers via a wide range of payment types, from credit cards to cryptocurrencies
  • Videforex allows you to enter positions with just ¢0.01
  • The support times are fast and reliable based on tests - few brokers offer 24/7 multi-lingual video support

Cons

  • The broker isn’t overseen by a trusted regulatory agency
  • US clients aren’t accepted due to legal restrictions
  • No MetaTrader 4 integration
Visit Videforex
Videforex Review

InstaTrade

"Although InstaTrade offers active trading on a comprehensive platform, it stands out with its fairly unique Fixed Income Structured Product (FISP), providing passive investment opportunities with up to 50% returns in 6 months if conditions are met. "

Christian Harris, Reviewer

InstaTrade Quick Facts

GBPUSD Spread0.2
EURUSD Spread0.0
EURGBP Spread2.8
Total Assets65
Leverage1:1000
PlatformsInstaTrade Gear, MT4
Account CurrenciesUSD, EUR, RUB

Pros

  • InstaTrade delivers an excellent suite of charting tools for day traders with its web trader comprising 250+ indicators, 11 chart types and a user-friendly design.
  • VPS hosting caters to algo trading strategies with a dedicated physical server providing rapid execution speeds as low as 9 milliseconds.
  • InstaTrade TV, consisting of video interviews and valuable market insights spanning equities, cryptos and more, helps identify opportunities and inform short-term trades.

Cons

  • Profits are only guaranteed in the FISP if investors do not reach the 50% profit level and attract other users with a total sum of $4 for each dollar in compensation.
  • InstaTrade sports one of the most cluttered websites and client cabinets in the industry, potentially overwhelming new traders, especially compared to XTB’s intuitive trading journey and resources.
  • InstaTrade’s growing educational tools provide valuable information for aspiring traders, but still trail category leaders like eToro with no structured course based on experience level.
Visit InstaTrade
InstaTrade Review

Plus500 US

"Plus500 US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills."

Michael MacKenzie, Reviewer

Plus500 US Quick Facts

Bonus OfferWelcome Deposit Bonus up to $200
EURUSD Spread0.75
Total Assets13
PlatformsWebTrader, App
Account CurrenciesUSD

Pros

  • The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
  • The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
  • Plus500 US excels for its low fees with very competitive day trading margins and no inactivity fees, live data fees, routing fees, or platform fees

Cons

  • The proprietary platform is user-friendly but lacks advanced technical analysis tools found in third-party solutions like MetaTrader 4
  • While Plus500 US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
  • Although support response times were fast during tests, there is no telephone assistance
Visit Plus500 US
Plus500 US Review

Axofa

"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform. The low entry requirements and ECN spreads are particularly promising, but the lack of transparency and respected regulatory oversight raises security concerns."

William Berg, Reviewer

Axofa Quick Facts

Bonus Offer10% Deposit Bonus
GBPUSD SpreadFrom 1.6 pips
EURUSD SpreadFrom 1.6 pips
EURGBP SpreadFrom 1.6 pips
Total Assets10+
Leverage1:1000
PlatformsMT5
Account CurrenciesUSD, IDR

Pros

  • The $1 minimum deposit across all 3 accounts will appeal to novices and those on a budget
  • Axofa offers the MetaTrader 5 platform which will particularly serve intermediate to experienced traders looking for advanced charting tools
  • Low ECN spreads are available from 0.0 pips, plus reasonable commissions at $3.50 per side

Cons

  • Our team found inconsistencies between international subsidiaries and website information
  • There is a lack of transparency around pricing and account conditions, which significantly reduces the trust score
  • The offshore operations and lack of any regulatory oversight is a major concern
Visit Axofa
Axofa Review

RaceOption

"RaceOption will appeal to traders new to binary options looking for copy trading, contests and 24/7 customer support. Experienced traders will also appreciate the account-based perks and bonuses."

William Berg, Reviewer

RaceOption Quick Facts

Bonus Offer20% - 200% Deposit Bonus
GBPUSD SpreadFloating
EURUSD SpreadFloating
EURGBP SpreadFloating
Total Assets25+
Leverage1:500
PlatformsTradingView
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Beginner-friendly copy trading opportunities in the broker's proprietary trading platform
  • High payouts on popular underlying assets up to 95%
  • First 3 trades are risk-free in the Silver and Gold accounts, with only $1,000 required to be eligible

Cons

  • Withdrawal thresholds apply
  • $250 minimum deposit is higher than other binary options brokers
  • Unregulated broker with lower safety score
Visit RaceOption
RaceOption Review

Chart

AUDUSD Chart by TradingView

Breaking Down ‘AUD/USD’

Before we get into the details, what precisely does AUD/USD mean? Quite simply, the exchange rate tells you how many US dollars (the quote currency) are required to purchase one Australian dollar (the base currency).

The AUD/USD pair is now the fourth most actively traded currency pair. In recent years, the AUD/USD has seen months where it represents around 7% of total forex market turnover. However, it is not one of the six that form the US dollar index (USDX).

Why Day Trade AUD/USD?

Before we consider AUD/USD day trading strategies and fundamental analysis, why should you opt for this particular currency pair when there are so many options currently available?

Drawbacks & Risks

Despite AUD/USD statistics demonstrating promising growth and attractive trends, there remain several drawbacks and risks to trading with this currency pair.

Influences on Movement

By reviewing AUD/USD relationship through long-term data, it is clear there are several main factors that influence prices. These include:

Commodities & Trading

Other Influences

So, whilst day trading the AUD/USD pair calls for technical analysis via daily, weekly, and monthly price charts, it also demands an understanding of the underlying economic forces at play.

Currency Correlations

Part of your AUD/USD trading view also needs to take into account relevant currency correlations. The success and failures of certain pairs will influence others.

Correlation is a measure ranging from -1 to +1, which determines whether the pair is positively or negatively correlated. Correlations can also change over time.

Note the correlation with the USD/CAD pair may also be partly attributed to the positive correlation between the Australian and Canadian economies, as both are heavily involved in commodity exports.

Gold Correlation

Another important area is AUD/USD correlation with gold. Gold has a positive correlation with AUD/USD. So, when gold is going up, AUD/USD goes down. When gold goes down, AUD/USD goes down.

What does this mean for you? It means you can look at the movement in gold markets to make AUD/USD forecasts for tomorrow.  So, get up currency correlations in a yearly chart and your future outlook could be seriously enhanced. Even looking at movement last week or in recent market hours may suggest price action is imminent.

AUD/USD Day Trading Strategy

Regardless of whether you opt for a breakout or scalping strategy, there are a number of factors to consider below that could enhance your intraday trading performance.

Timing

Regardless of what strategy you use for live, online AUD/USD day trading, knowing the best time to trade could make all the difference to your end of day profits. Whilst 24/7 forex trading is available, certain time periods will offer the greater levels of volatility and volume needed to generate substantial profits.

You will find the biggest daily moves and greatest volume during Australian working hours (overlapping with the Asian trading session), plus during the most active US trading hours. Economic reports, such as non-farm payrolls, durable goods orders, and consumer inflation data, can also all trigger significant spikes and shifts.

So, for the greatest volatility, focus your attention on day trading between 00:00 and 02:00 GMT, plus 06:00 to 08:00 GMT. Then for the most volume and trade activity, head back online between 12:00 and 17:00 GMT.

News

There are a number of different approaches you can take day trading on the AUD/USD currency pair. Some will utilise historical price charts and basic daily charts, whilst others will make their expectations based on news updates.

Market sentiment and price action can quickly shift with breaking news. If you can anticipate where the trend will head, you can capitalise on these news updates.

To do that, you need to have reliable news resources you can turn to. Some of the most highly regarded include XE, CNBC, Reuters, Bloomberg, Forex Factory, Yahoo Finance and Google Finance. These can prove invaluable. On top of standard AUD/USD commentary and the latest technical analysis, they can also offer the following:

Many of the above sources will also have obscure trends and unusual daily moves explained by experienced FX traders. So, used correctly, the news today is a powerful weapon to add to your day trading arsenal.

Example

Breakout strategies are often thought to be effective techniques for capitalising on fluctuations when the AUD/USD currency pair is considered so volatile. After monitoring support and resistance, positions should be entered in anticipation of a break. If the price continues in this direction, you can hopefully profit.

Reversal at Support/Resistance

Look no further for a straightforward AUD/USD day trading strategy. Support or resistance could be a horizontal or diagonal line, but it is the point that price has reversed off at least twice before. This should include the starting point of your support/resistance line.

It’s worth noting support and resistance are usually areas, instead of specific prices. So, your trade setup can actually take place slightly above or below.

The support and resistance then tell you to be ready because a reversal or breakout could be fast approaching. You would then need to wait for consolidation near your support/resistance. If the price breaks above a consolidation near support or breaks below a consolidation near resistance, then you have your trade signal.

When the reverse signal does then occur, take your trade when the price moves just above the consolidation near your support, or just below consolidation near your resistance. If your AUD/USD pattern does indeed appear, you are anticipating the price will ricochet off support or fall off resistance.

However, if the price fails to do that and instead breaks above the major resistance area, or breaks below the major support area, then you should exit the trade as soon as possible.

Risk Management

AUD/USD discussions often focus on buy and sell rates, hourly forecasts, opening and closing positions, daily ranges, but not on how to mitigate risk. It doesn’t matter if it’s the lowest or highest-ever historical prices today, without an effective money management system you may not still be in the game next week.

So, what precisely is an AUD/USD risk system? Its meaning is simple. It is a way of protecting against losses by pre-determining position size. Most traders recommend risking no more than 1-2% of your account balance on a single trade.

For example, if you have $10,000 in your account, you wouldn’t bet more than $100 to $200 on a single trade. That way even if you lose, you still live to fight another day. This basic technique could prevent you from sinking into the red.

As famous trader Paul Tudor Jones asserted, ‘risk control is the most important thing in trading.’

So, forget closing prices, buy/sell spreads and picturesque candlestick charts, sit down and determine your risk parameters first. Moving forwards and capitalising on the next rally with promising pip movement will be far easier if you still have capital left in your account.

Last Word on Strategy

Whatever your trading plan involves, from daily pivot points to scalping, employ your strategy at the most effective time. Plus, take into account the latest news updates and breaking announcements that may help you predict future price movement.

History

Early History

There was a time when the Australian dollar was connected to the British pound. The Australian dollar was at the mercy of the pound, rising and falling in tandem. Yet 1946 brought about a change. The Australian dollar was pegged to the US dollar for a short period before it returned to the British pound.

By the time 1966 rolled around, the Australian dollar was launched as a decimal currency, followed by the deregulation of Australia’s financial system. The result of this was significant price movement in global forex rates as the open-market system was now in the crosshairs of the country’s reserve bank.

It wasn’t until 1983 that the AUD/USD pair begin to display its strength. Copper, iron, and gold exports were partly behind this illustration of might. These represent approximately one billion Australian dollars and around half of the nation’s total exports.

As trading relations with China and other exporting became stable, the country and currency enjoyed consistent growth.

Recent History

Many traders do not realise how much your AUD/USD and forex outlook of today is shaped by past events. Understanding the context of this currency pair’s relationship may allow you to make more accurate exchange rate forecasts and predictions.

The Australian economy and the popularity of trading Australian dollar currency pairs has increased in recent years. In 2012, the AUD/USD pair was the third most popular currency pair in the world, jumping two places in just two years. A stable trading relationship with China, high-interest rates, plus commodity-exporting is partly to thank.

In fact, the Australian economy has grown year on year since 2001, facing just one obstacle during the 2008 global financial crisis.

For the most part, minimal intervention from the RBA in the last ten years has attracted huge numbers of FX traders to the AUD/USD currency pair. However, surprisingly strong reversing trends when central banks make unexpected announcements can lead to traders suffering substantial financial losses.

Role of Australian Dollar

An important element of AUD/USD trading economics is recognising the role of the Australian dollar. Currency forecasts will reflect Australia’s economic influence.

Today Australia boasts the 13th largest economy in the world. In 2013 it had a GDP of an impressive $1.56 trillion. Services form 68.6% of GDP. Their most influential services include finance, media, education, and logistics.

However, as touched upon elsewhere on this page, the Australian dollar is a commodity-based currency. For example, you will see a high correlation with the prices of exported commodities, from coal and iron to copper and gold. The strength of the Australian dollar vs the US dollar is tied to the success of their exported goods.

So, the Australian dollar plays a huge role in international trade. As such, to make accurate predictions on your live forex chart, you should consider the following key indicators:

In addition, to find reports on their grain commodities, see Australia’s Bureau of Agricultural and Resource Economics and Sciences (ABARES). Online you will find free data on crop planting, weather, harvests, mine output, plus other grain commodity statistics.

The Australian dollar also now plays an important role in the forex space. Because of the economy’s consistent strength, the Aussie is now the fifth most traded currency, playing a part in 8.6% of all FX trading.

So, the Australian dollar plays a vital role in international commodities trading, as well as forex trading. Plus, the Australian economy is one of a select few large economies still with a AAA Debt rating. This further highlights its political and economic stability. All of these factors will continue to attract aspiring AUD/USD traders.

Role of US Dollar

You cannot make accurate daily forecasts, let alone 3-month or 12-month AUD/USD forecasts without understanding the crucial role the US dollar plays. Their GDP represents around 25% of the global nominal GDP.

After China, the US is the second-largest trading nation in the world. They are also the second-largest manufacturer. In 2013, their industrial production was $2.43 trillion and greater than the output of Germany, France, India, and Brazil combined.

Below are just a few of the vital roles the US dollar plays:

When you consider the staggering size of the US economy and its numerous strengths, it’s straightforward to see how economic data on the US can impact the forex marketplace, and in turn, the AUD/USD currency.

Some of the top economic indicators that influence live FX exchange rates include Trade Balance, Consumer Price Index (CPI), Producer Price Index (PPI), Retail Sales and Consumer Confidence.

Your AUD/USD technical analysis should consider many of these data releases in the economic calendar. In addition, the Federal Open Market Committee meetings are held periodically each year, with press conferences, expectations and forecasts released every few weeks. Each announcement could potentially trigger shifts in the AUD/USD currency pair.

Final Word on AUD/USD Trading

The AUD/USD promises day traders all the attributes needed to generate substantial profits, including rich liquidity and volatility. However, this hunting ground comes with tough competition, so asserting an edge will require a number of elements.

Because it’s one of the seven major pairs that contain the US dollar, staying aware of both monetary policy and interest rates set by the Fed and RBA is crucial. Careful technical analysis, including real-time charts and the news, will all be needed to capitalise on those bullish or bearish patterns. Just as important though, is finding the best forex trading platform for your individual needs.

FAQs

What Is AUD/USD?

AUD/USD is the fourth most actively traded currency pair in the world. The exchange rate determines how many US dollars are needed to purchase one Australian dollar. AUD/USD is also a ‘major’ pair which means it includes the US dollar, is traded in high volumes and is highly liquid.

Why Should I Start Trading AUD/USD?

Since the Australian dollar is one of the highest performing major currencies, the AUD/USD pair enjoys high liquidity and volatility. The pair is also positively correlated with several other currency pairs, as well as commodities such as gold.

What Is The Best Trading Strategy For AUD/USD?

The best trading strategy for AUD/USD ultimately depends on each individual trader. With that said, it’s always important to consider the optimum times to trade AUD/USD, as well as the best new resources for fundamental analysis. Whether you’re conducting Elliott Wave analysis or support and resistance strategies, make sure to always implement proper risk management.

Where Can I Trade AUD/USD?

As is it one of the most popular major currency pairs, you can trade AUD/USD at virtually any online forex broker. To start analysing current AUD/USD charts and begin trading, you will need to register at your chosen broker and sign in to the trading platform.